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Establish court for tax matters, says tribunal

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January 28, 2023
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Senior officials at the Tax Appeals Tribunal have urged the government to set up a fully-fledged court to handle both civil and criminal cases related to taxation.

The chairperson of the tribunal, Mr Asa Mugenyi, said the government should set up the court with the aim of increasing the tax base and fast-tracking the resolution of disputes.

“Traders and banks have the commercial court for business disputes, there are High Court divisions for land, family and other civil disputes but for tax we have a tribunal,” he said.

Mr Mugenyi added: “Not everybody has land or business but everyone in the country is a taxpayer.’’

He said the tribunal does not have the capacity to handle all tax disputes. 

 The tribunal is a court of first instance in handling tax disputes.  Aggrieved parties can thereafter seek redress in the High Court for costs and damages among others.

Mr Mugenyi said there is a need for mechanisms to expeditiously handle tax disputes because they affect peoples’ businesses and cripples the economy because of money  withhled due to disputes. 

 Mr Mugenyi made the remarks while hosting the State Minister for Finance in charge of General Duties, Mr Henry Musaasizi, at the tribunal in Kampala last Friday.

 He said the number of disputes before the tax tribunal have increased from a total of 20 cases filed in 2008 to about 40 disputes every month.

 “In the financial year 2021/2022, the tribunal resolved 149 main disputes worth more than Shs517 billion and if we are to include minor applications, the amount would go up to about Shs762 billion,’’ he said.

Mr Mugenyi added: “At the end of 2022, the 247 pending cases were worth more than Shs467 billion. At the beginning of  2021, the pending disputes were worth Shs1.2 trillion.’’ 

He said about 50 per cent of the country’s budget is financed but more revenue can be collected if the tax base is expanded.

 The Chief Registrar, Ms Sarah Langa Sui, said there must be a justification to set up such a court .“I cannot say much at this point. They have to put their proposal in writing and bring it to the Judiciary which will consider it. If it’s worthy, then the process of setting up the division will commence,” Ms Langa told Daily Monitor on Wednesday.

The Tax Appeals Tribunal was established in 1998 under Article 152 (3) of the 1995 Uganda Constitution to settle disputes between taxpayers and the Uganda Revenue Authority.

 Meanwhile, minister Musasizi promised support  the upgrade of the tribunal. But he asked the members to ensure  timely  disposal of disputes and fairness when determining cases.

The five members of the Tax Appeals Committee took oath in 2018. They are;

• Dr Asa Mugenyi- chairperson

• Dr Stephen Besweri Akwabay, a former tax practitioner

• Ms Christine Nalubega Katwe, an accountant

• Mr George Wilson Mugerwa, an economist

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